The Des Moines City Council approved a franchise agreement with Lake Haven Water and Sewer District on May 22 after discussion about whether the 6% franchise fee is effectively a tax and whether the city should rely on utility franchise fees as a revenue source.

The consent agenda item was pulled for clarification and discussion before the vote. Staff explained the franchise agreement calls for Lake Haven to pay a 6% franchise fee consistent with other utility agreements in the city and said the franchise contract includes a variety of terms beyond the fee, including protections and operational provisions for right‑of‑way use. Councilmembers discussed equity and regressivity concerns, and whether the franchise fee is appropriate for a public utility that provides essential services.

Councilmember Harris said she would vote no, calling the approach “arbitrary” and warning that the staggered timing of franchise agreements can hinder long‑term planning. Councilmember Grace Matsui said the agreement is not a tax and noted that utilities use city rights‑of‑way to operate and should be accountable; she said she would vote against only if she thought the city could not sustain current services without the revenue. Other councilmembers said the 6% figure had been negotiated with multiple utilities and that a consistent approach across utilities promotes fairness.

On the record in the meeting transcript, the ordinance (identified in the agenda as draft ordinance 25‑037) passed by a 4‑3 margin. The transcript contains cast votes and statements of support and opposition; the motion text read, “I move to pass draft ordinance 25 dash 0 3 7 granting franchise agreement to Lake Haven Water and Sewer District.” The record shows both supporters and opponents of the measure spoke before the roll call, and the chair announced the motion passed 4‑3.

Council discussion also covered administrative points: franchise agreements address more than a simple fee and include provisions that the city relies on for rights‑of‑way management and coordination with utilities on construction and repairs. One councilmember said similar franchise terms previously yielded municipal savings on a separate water project years earlier; another councilmember characterized the fee as regressive and said the city’s finances rely too heavily on utility and other flat fees.

The council approved the ordinance on its second reading and added the Lake Haven district to the city’s existing franchise framework; the transcript does not record any conditions for the contract beyond the agreement language presented.